Freddie sells bills at higher rates, stronger demand

NEW YORK, Aug 10 (Reuters) - Freddie Mac (FRE.P)(FRE.N) said its sale of $2 billion of bills on Monday brought higher rates and demand was stronger compared with the most recent sales of the same sizes and maturities.

Freddie Mac's $1 billion of three-month bills due Nov. 9, 2009 were sold at 0.182 percent, slightly higher than a 0.180 percent rate for the $1 billion offering on Aug. 3.

Freddie Mac also auctioned $1 billion of six-month bills due Feb. 8, 2010 at a 0.294 percent rate, up from a 0.284 percent rate for its $1 billion of bills auctioned last week.

Demand for the three-month bills was stronger than last week, with a bid-to-cover ratio of 3.83 compared with 3.75 on Aug. 3, while demand was also stronger for the six-month bills at 4.02 against 3.85

A bid-to-cover ratio reflects the amount of bids compared with the amount offered. A higher ratio indicates stronger demand.

Settlement is Aug. 11.